Bullish sentiment pushes KSE to gain 198 points

KARACHI

After smooth rollover of future contract from Jun to July, market gained 198.10 points or 0.58pc to close at 34,331.94 points level on Wednesday.
Positive sentiments on the global market front tempted local investors to accumulate some value stocks.
Turned around story in DCL over the conversion of its Rs500m loan to 50m outstanding shares, helped the stock to close at its upper limit.
Buying spree continued in PAEL up 5pc on the back of speculation over its loan conversion at higher price, observed Samar Iqbal at Topline brokerage.
Cement sector remained strong today due to higher PSDP budget allocation as LPCL, Power and DCL reached their upper circuit. Oil and Gas sector remained in green zone due to slight increase in international oil price leading to PSO, Hascol ending the day up 1.3pc and 2.5pc respectively. In the banking sector, NBP reached its upper circuit while other scrips such as MCB and UBL also remained green. KEL rose 1.2pc remained in the limelight following the minister’s clarification of not taking over the company. PAEL continued its journey towards north as optimistic expectation of investor towards its upcoming financial results, stated analyst Muhammad Mobeen at JS Global.
Higher banking spreads data for May’15 at 5.59pc amid Moody’s upgrade on deposit ratings last week, falling borrowing costs and higher global crude prices played a catalyst role in positive sentiments at KSE, said analyst Ahsan Mehanti.
Traded volume increased by 51.5pc to 391m shares, whereas, traded value rose by 20pc to Rs12b/ $117.8m.
Major activity was confined to second-tier stocks like K-Electric (KEL), Dewan Salman (DSFL) and Pace Pakistan (PACE) with traded volumes of 32m, 25m and 22m shares, respectively.

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